Answer to Question #79838 in Finance for Luke Nash

Question

1)A business purchases 10 digital televisions for use in its offices. When the televisions arrive at the workplace the owner of the business decides that one will be taken home. The total cost of the acquisition was $16,500 (GST inclusive).

Describe how you would process this to comply with taxation reporting requirements. How much input tax credit could be claimed and why?

2)How will a business determine the correct lodgement requirements for its particular circumstances

3)Undertake your own research to collect three pieces of financial data. Each piece of data must come from a different source. Submit a copy of the data and your comments in response to these activities to your trainer/ assessor.

Summarise the data.Evaluate the usefulness of the data to those who might be required to provide a report on financial activity. Describe how you could index the data to ensure it can be quickly located and referred to later. Be specific.

Answer 1

1) In this case all 10 televisions should be under taxation, as all of them were bought to be used at the workplace.
2) Lodgment process requires the business to maintain the tax records to explain the transaction undertaken by them.
To meet the on-time lodgment requirement, it is important to review and update client list and also check whether new clients who were previously self-preparers have outstanding prior year tax returns.
3) Financial data consists of pieces or sets of information related to the financial health of a business. The pieces of data are used by internal management to analyze business performance and determine whether tactics and strategies must be altered.